TECHNICAL PMTECTS REQUIRM R&D IMXUT
You will be aware that over the last 18 months the
research and develop-
ment policy within BAT has been substantially
revised. The laboratories
in Southampton, now under the management of
BATUKE, continue to carry
out sow long-term research projects, but there is
now a much greater
concentration of effort on the practical
application of existing know-how
and the Provision of technical support to BATCo
Operating Companies.
During 1986 considerable efforts have been made to
contact Operating
Caapanies to discuss ways in which they my
interact more positively with
the Research and Development Centre. In the past
this has been done on a
largely informal basis and the extent to which we
have provided help has
started to grow since our re-organisation. Already
the R&D Centre has
started to form strong links with sane of the
Operating rcff%-nies which
previously have had little direct support. We
believe that there is a
considerable market within BAT companies for the
wide range of expertise
that now exists within the R&D Centre.
With the support of the BATCo Board we are now
attempting to improve the
effectiveness of R&D and its links with Operating
Companies by formalising
the liaison which we have with them. Ibis is in
response to an agreement
which exists between BATCo and the R&D Centre, an
extract of which reads
as follows :
"The programme will include research projects for
BATCo's
Operating Companies. BATUKE will be responsible
for
obtaining fran BAT'Co's Operating Companies
details of all
research projects required by those companies
during the
following year and will prepare an estimate of the
costs
of each project. The decision as to whether any
such
project is to be included in the research
programme will
be made by BATCo."
The essence of this is that we wish to develop a
programme for the R&D
Centre which responds to the needs of Operating
Companies, whether this
is in marketing, production, or any other
functional area of their business.
I would like to propose that, for the future
planning cycle, companies
specifically include in their presentation details
of technical projects
which they wish to pursue during the caning year
and for which R&D input
will be necessary. In this way we will be able to
ensure that the
expertise in Southampton is directed at projects
which will be relevant
for either individual companies or to grcups of
companies which may have
a cannon problem. 11hus we would be more certain
to include applied
research and development work of which ccmpanies
will be able to take
advantage.
The second suggestion is that each company should
naninate a person to be
responsible for liaison with his own colleagues to
prepare specific projects
which will be included in the proposals contained
in the Company Plan.
Ideally this person should have a suitable
technical background to form
an effective contact between your carpany and the
R&D Centre. This
person would have direct responsibility for
ensuring that the co-operation
is made as effective as possible. 4~
BATCo document for Province of BritiSh Columbia 28
October 1999


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At this stage, discussions are being held with
BATCo over the question
of funding this specific support for Operating
Companies. Essentially.
the requirement is that all Operating Czmpanies
should meet the specific
costs and expenses incurred on their behalf. The
reality is that this
is not always possible, due to Foreign Exchange
Control restrictions and
Government regulations within the countries in
which sow companies
operate. Consequently, we see our role as being
the provider of an
essential service only and, to this end, we will
advise ccmpanies of the
estimate of the costs of the specific projects
which you require to be
undertaken. These costs can form part of your
usual budgetary process
and, for those companies suffering restrictions on
remittances, the
basis for discussions with your Territorial Team
as to the priority of
the information need versus the requirement that
RATCo becomes responsible
for funding the cost/expenses on your behalf.
R&D policy has been changed with a view to
sharpening the focus of the
work carried out in Southampton for the benefit of
BATCo companies. O.W
changed programme and the expertise which we have
retained as a result
of the reorganisation reflect this. All the staff
in the Centre are
looking forward to greater involvement and
fruitful, practical co-operation
with Operating Companies throughout the Group.
RTCHARD BINNS
CID
4 ~:b
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N-)
NJ
BATCo document for Province of British Columbia 28
October 1999